"Elevating Marketing to the C-Suite: A Game Changer for AEC Firms"

Why AEC Firms Can’t Afford to Ignore Marketing Leadership

It's been a minute since I've written on theaecguide.com blog. Several things have changed over the summer. I took a Chief Marketing Officer (CMO) position at Prairie Engineers in July. With the new role, the Amplify AEC conference, and a short family vacation, I've missed writing. But I'm back in the saddle and ready to keep pushing the AEC marketing profession forward!

CMO Doesn't Mean "Consider Marketing Optional"
The CMO position for AEC companies is not a common one, but a growing need. According to Michael Racis, "In recent years, fractional marketing leadership has grown much more popular as mid-sized firms look to realize the benefits of working with an experienced marketing leader without the price tag of a full-time Chief Marketing Officer (CMO)" (The Fractional CMO: What it is + How it Can Benefit AEC Marketing | LinkedIn). Many firms are using the "fractional CMO" to fill the marketing leadership gap. Others see the long-term benefits of a full-time CMO.

So, what exactly is a CMO and what value does this role bring to a firm? To answer this question well, it is important to lay the groundwork in answering "why?" Why is marketing critical to AEC business . . . or is it? Is AEC marketing business-critical or business-convenient? AEC services predate the permission to market them. So, many firms have lagged in making marketing business-critical. The commitment of a firm to recognize the value of a marketing executive who participates in the top leadership says something about that firm. So does the lack of commitment to elevate marketing professionals into top leadership roles.

"The commitment of a firm to recognize the value of a marketing executive who participates in the top leadership says something about that firm."

Business-Critical or Business-Convenient?
Business-critical functions are those that serve a company in its sustainment, growth, and profitability. Payroll, accounting, HR, and operations are critical business functions. These are sustaining functions. However, leadership, strategy, technical delivery, sales, and marketing are growth and profitability functions. Most AEC firms accept leadership and technical delivery as business-critical. When it comes to strategy, sales, and marketing, it gets a bit fuzzier. That is because so much of what AEC businesses provide are essential for living and economic stability. Firm owners have a long-standing belief that the phone will simply keep ringing and work will keep flowing. While this may be true in strong economies and stable markets, those who have been around a while know this is shifting sand.

Marketing Leadership Solves Challenges
There are several factors shifting the AEC industry. Recruitment and retention continue to be a primary challenge. Inflation and rising wages challenge financial performance and profitability. Firms wish to diversify by discovering new project opportunities in current markets or pre-positioning in new markets. As technology changes how firms deliver projects, finding your edge means quickly adopting and implementing it. (Blog | New SN Research Sheds Light on State of AEC Industry Heading Into 2024 (stambaughness.com)

These challenges can all be positively impacted by great marketing leadership! The principles of marketing your services to clients are the same as marketing your company to future employees. Firms utilizing their marketing leaders for recruitment and retention campaigns are discovering a competitive edge. Firms that have discovered their differentiators and employ laser-focused marketing strategy enjoy better financial performance and profitability. Marketing helps firm leaders better identify their ideal clients and markets. Finding growth opportunities in current markets or pre-positioning in a new market is not guesswork. Marketing leaders understand how to research and skillfully adapt to market changes.​

The state of the AEC industry demands business-critical marketing leadership. The growing role of the Chief Marketing Officer is evidence that firms are catching up and catching on. ​